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The Gig Economy and Franchising: Freedom and Flexibility

Posted by HIRE YOURSELF on Feb 4, 2020 8:03:00 AM
HIRE YOURSELF

You have decided to follow your dream and own your own business. You opted to buy a franchise concept. Now you have to decide if it is going to be your full-time job or your gig on the side. You know the gig economy is in full swing today with more than a third of Americans working within it.

Once you decide whether you will be a semi-absentee owner or plan to make the business your full-time job, you wonder... is my workforce in the gig economy too? How will that affect my hiring?

Podcast Episode: The Gigging FranchiseeThe gig economy is being felt in franchises and businesses around the United States. Most "giggers" are freelancers who can work semi- or fully remote due to technology and your franchise may be pulling from a pool of people like that. There are advantages and disadvantages to franchisees in this kind of economy, and it is important to consider its repercussions on your business.

What is the Gig Economy?

Let's face it: people have always worked freelance. A day laborer who was paid at the end of the day had no assurance he would receive work the next day. He was freelance. As was the woman who cleaned someone's house couldn't be sure that family would need her the following week.

Today, the moniker of "gig economy" has been built around the idea of remote work, usually done in the short-term for a project. This is different than a "side hustle," which is work or an entrepreneurial venture outside of someone's normal workday.

People working in this economy like the flexibility it offers. And while this work model resonates with younger workers, there are plenty of non-Millennials freelancing today. The trade-off for flexibility and variety is income insecurity and benefits often offered by a business.

Quiz: Are You Renting Your Income?Franchising: The Ultimate Gig

One might consider the idea of leaving the corporate world behind and purchasing a franchise is the ultimate freelance move. You are creating your own gig. You become your own boss.

Like freelance work, you are still provided some structure and help. Your franchisor gives you a basic outline for what the business should look like, systems and processes to work within, some marketing assistance and other help when you need it. Other than that, you run the show.

Part of the freedom that we find as business owners is that we control our destiny and have a huge amount of freedom. We can start work early in the morning, or go late into the evening, or even put in time on the weekends. Sure, we still have deadlines to meet, but we set them.

Beyond the ultimate gig, franchising is also entrepreneurial. It won't be about creating the newest app or car service. It will be about building a business from the ground up. Think of it as "entrepreneur lite."

How the Gig Economy and Franchising Mix

Not all franchises are set up to offer positions for freelance workers. In some, it would be next to impossible. Most retail-based franchises would have a hard time hiring remote workers since most of their work is done in a single location.

Service franchises might have an easier time. Consulting franchises could employ remote workers to assist with some of the projects, but a home care agency would have a tough time hiring someone outside of their service area (caregivers may consider themselves freelancers, but they don't have the full freedoms of one).

The workforce for franchises would be decimated if everyone moved to freelance work, but it isn't viable. Franchises are protected from a depleted workforce. A majority of franchises have extensive training programs for their employees. They can take someone with zero experience in a trade, put them through training, and create a viable worker.

If landscaping agency and plumbing service only hired people who were fully trained, they would never succeed. One of the unique value propositions for becoming a franchisee is the ability to take anyone willing to learn what you do and turn them into an employee.

How the Gig Economy Hurts Franchises

There is no doubt that a gig economy can have negative effects on franchises. But franchises can set themselves up for success against this adversity.

The gig economy is based on freedom. That freedom that you seek as a franchisee is something your workers often want. You might not be able to offer them the ability to work from home, but at its core, the gig economy is about flexibility. A franchisee, who has now become a manager and leader of a team of employees, can create less friction by offering more freedom.

Flexibility with scheduling can save a franchise and provide a healthy bench of employees. This certainly creates more work for you, or whoever does the scheduling, but happy employees will undoubtedly perform better. Imagine a satisfied employee working with a customer versus an employee who is just there to pick up a paycheck.

Knowing the culture of workers and working within it, instead of against it, can radically change your business outcomes.

Legal Issues with the Gig Economy and Franchises

California recently put forward a bill that many feel will cause franchises to shutter across the state. Knowing the difference between a part-time employee and an independent contractor is important. You need to know all the legal issues surrounding a gig economy to make sure your business stays out of trouble and solvent.

As a franchisee, you will have someone on your side to help you. The franchisor! An independently owned business would need to engage a lawyer (definitely a freelancer) to sort out new employment laws and make sure all practices stay within the legal requirements, but a franchisee will receive that advice from their corporate office.

Get ahead of the issues by acquainting yourself with zero-hour contracts, independent contractor rules, and all forms of worker status.

Franchises Succeed in the Gig Economy

The success of franchises is clear with more units operating each year. Business owners looking to strike out on their own instead of being stuck behind their desk, in a sterile office at their high-rise corporate headquarters are turning to franchising each day. They are looking at their alternatives and deciding they want their own gig.

The growth of the gig economy is not something to fear as a franchisee and business owner, but instead, something you can embrace for success.

You want success and support. Just like a freelancer. You will also have freedom and control of your own life. Just like a freelancer.

Ready to consider taking the first step to HIRE YOURSELF? We are here to help you find the best franchise match for you.

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Topics: Mindset, Franchise

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